Why do people get anxious about planning for retirement? The anxiety comes from different places—it can be the complexity of the planning process, the uncertainty of the outcomes, or the different parts that have to come together in order to make a cohesive plan work.
Then there’s the fear of making a mistake. In our experience in working with clients, this is the most common cause of anxiety. There are no do-overs when it comes to retirement planning. That fact can often place significant pressure on individuals and raise their anxiety about the entire process.
Because April is Financial Literacy Month, we want to take this opportunity to address a topic that’s important to many of our clients—helping children grow into financially responsible adults.
You can find plenty of financial education geared toward children and young adults with a simple Google search. Much of this information is good but overlooks many of the realities of our financial lives.
I’d like to start with these realities, then share some resources we recommend where you and your children can start to build your financial literacy.
The importance of responsible giving
One of the benefits wealth gives us is an ability to be financially generous to friends and family members. For many of us, the primary reason why we build wealth and make sacrifices is to provide and share it with others.
In theory, sharing wealth and making monetary gifts is always easy. It can be if the giving is done responsibly. However, money has the potential to complicate relationships, even among the closest spouses and families. These complications can end up being disruptive or even destructive to the family dynamic.
When a person or a couple wants to share wealth, they should do so with clear intentions, a thoughtful plan, and an awareness of the effects it will have on others. We have helped many clients and families over the years share their accumulated wealth. Here are some of the lessons we have learned along the way.
I believe in Capitalism. It is the backbone of the financial markets. It provides resiliency to the American economy that has endured for decades, through periods of boom and bust. This foundation of our financial system is formed by the achievements of American business—thousands of companies, both large and small—that solve problems, invent solutions, and promote innovation to help improve people’s lives.